Question MA2.29: The following results were achieved in the last accounting p...
The following results were achieved in the last accounting period:
r = $50,000 w = $16,000 t = 800 units u = 2,500 units
The company expects to make and sell an additional 1,400 units in the next accounting period. If variable cost per unit, selling price per unit and total fixed costs remain unchanged, profit will increase by $ \boxed{\ \ \ \ \ \ \ \ \ \ \ \ }
The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.
Learn more on how we answer questions.
Profit will increase by $28,000.
Contribution per unit = (w+ r)/(t + u) = $(16,000 + 50,000)/(800 + 2,500) = $20
Increase in profit = 1,400 additional units × $20 = $28,000
Related Answered Questions
Question: MA2.7
Verified Answer:
Solution 7
Process account = credit; abnormal gain...
Question: MA2.6
Verified Answer:
A = £715
B = £979
Workings:
Cost per complete u...
Question: MA2.5
Verified Answer:
The costs are all production overheads with the ex...
Question: MA2.9
Verified Answer:
The overtime premium paid to the operator would be...
Question: MA2.32
Verified Answer:
Solution 32
The budgeted production of product G i...
Question: MA2.41
Verified Answer:
Solution 41
The sales price variance for June is £...
Question: MA2.50
Verified Answer:
The number of batches of shirts to be laundered to...
Question: MA2.40
Verified Answer:
The flexible budget cost allowance for 6,200 miles...
Question: MA2.39
Verified Answer:
The budgeted production of product B for period 4 ...
Question: MA2.38
Verified Answer:
Option D is the only factor that could explain a f...